LC & SD Report for Transnet 232 D45 Locomotive Project

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1 LC & SD Report for Transnet 232 D45 Locomotive Project August

2 CRRC Business Segments The Largest World Leading Rail Transit System Provider, 2015 Revenues: USD 37 billion, Ranks 266 of Top 500 world Companies. Mainline Transit Urban Infrastructure Diversified Industry Modern Service 2 Copyright 2015 CRRC Corporation Limited

3 CRRC History Profile Xugezhuang Works founded Industry Bureau of MOR China National Railway Loco. & Rolling Stock Industry Corp. Split into two CNR and CSR CRRC Corporation Limited The history of CRRC is the history of Chinese railway 3 Copyright 2015 CRRC Corporation Limited

4 Project Overview 232 Diesel Locomotives Phase3 Phase2 Phase1-20 Locos Manufactured by OEM -15 KD Locos Assembly in SA -197 Localization Locos in SA Contract Signed -Design and Prototype -36 th Localization Locos in SA -20 Loco completed -Last loco finished in KD Loco Started to Manufactured in SA -Warranty & Service 4 Copyright 2015 CRRC Corporation Limited

5 Project Overview D45 Class Locomotive Project Technical Features High Power (3300 kw) Biggest Power Narrow Gauge D-L Worldwide Low Energy Consumption World Leading Technology Implement Features Wide Scope Technical Transfer Improve Capacity of Loco Manufacturing Capacity 5 Copyright 2015 CRRC Corporation Limited 5

6 Local Content & Supplier Development Localization Overview Local Procurement Local Production 3.4 Bil Rand,1.8 Bil have been signed and more than 30 local suppliers will be contracted in the project. 2.2 Billion Rand of components be manufactured locally. -Reduction in import leakage -Build and expand local production -Improve local manufacturers capabilities -Job Creation and Job Preservation 6 Copyright 2015 CRRC Corporation Limited 6

7 Local Content and Supplier Development Technical transfer drawings,220 technological files and 61 quality files have been transferred - 3P guidance and local support Support to local supplier Skill development 178 local employee have been trained in SA and China and more than 381 employee will be trained directly and indirectly. Job creation and preservation 234 direct and indirect jobs have been created and preserved, more than 325 direct and indirect jobs will create and preserved in the future Industrialization Direct and indirect investment is about 123 million Rand 42 % % Local content commitment :55% SD commitment: 64% Contracted To be contracted 7 Copyright 2015 CRRC Corporation Limited 7

8 Local Content and Supplier Development South Africa Local Components Brake and vacum pipes Vanrail Engine MTU SA Traction System Yongji SA Assembly of locomotive Transnet Engineering Journey Bearing Timken SA Car Body TE Air Conditioning Booyco Engineering Battery:FNB Wiper TE Lighting System Radel IEM Waymark Door Siyahamba Brake System Knorr SA TM blower Penbro Alternators Yongji SA Windows Sanding Trap Vanrail Cab seats Isrin SA Ducting system Booyco Engineering Electric System TE and local potential suppliers Corridor Floor TE Toilet Aeroservices Brake Resistor Micrelettria Fridge Minus 40 Window Siyahamba Wiggins Fuel filler FloSolve Battery FNB Fuel Tank TE Traction Motors Yongji SA Coupler Scaw Bogie TE MSU Bearing SKF SA Wheels Brake and vacum pipes Nalneladi Vanrail CNR is still under negotiation and finalize with local suppliers 8 Copyright 2015 CRRC Corporation Limited 8

9 Further Activities For SD & LC Technical Support Social Contribution Capacity Improvement Extend Local Procurement 9 Copyright 2015 CRRC Corporation Limited

10 Local Content and Supplier Development Further Activities- Local Procurement Axles Traction motor Gear case Radiator Local procurement Axle box U-tube Wheel Traction blower CRRC will purchase more critical components locally and intend to bring more investment to local facility to build local production. 中国中车股份有限公司版权所有 Copyright 2015 CRRC Corporation Limited

11 Local Content and Supplier Development CRRC focus on the following issues cooperate with South Africa Partners. Capacity &Capabilities improvement Technical support Quality management Create more jobs and skilled staff Social contribution 11 Copyright 2015 CRRC Corporation Limited

12 Vision & Recommendation Long Term Partner in SA & Africa WIN Research & Supplier Cooperation Further Field Cooperation 12 标题文本 此处为文本占位符示意 Copyright 2015 CRRC Corporation Limited

13 Thanks!

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